DUBLIN, June 9 Ireland's state-run "bad bank" selected U.S. private equity firm Oaktree Capital Group LLC as preferred bidder for two portfolios of non-performing loans that have a combined par value of 4.7 billion euros ($5.3 bln), a source close to the deal said on Thursday.

Oaktree beat Cerberus and Lone Star to secure the Project Ruby and Project Emerald portfolios, said the source, without giving the price paid for the loans. A spokesman for NAMA declined to comment.